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With the international economic climate grinding to a stop because of the COVID-19 pandemic, economic problems can not get a lot worse than they currently are, according to renowned financial expert David Rosenberg, primary financial strategist at Rosenberg Research and also Associates.
Nevertheless, Rosenberg added that investors should not anticipate to see a substantial recovery anytime quickly. He stated that they must position their long-term portfolio to reflect an environment of long-term stagflation.
" We're mosting likely to be into a long term duration of extremely soft financial development. There is no rebound that is taking us back to where the economy was," he said. "The brand-new regular is mosting likely to be really constricted."
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What investors should own and avoid as stagflation risks increase – David Rosenberg
With the global economy grinding to a halt because of the COVID-19 pandemic, economic conditions can’t get much worse than they already are, according to famed economist David Rosenberg, chief economic strategist at Rosenberg Research and Associates.
However, Rosenberg added that investors shouldn’t expect to see a significant recovery anytime soon. He said that they should position their long-term portfolio to reflect an environment of long-term stagflation.
“We’re going to be into a prolonged period of very soft economic growth. There is no rebound that is taking us back to where the economy was,” he said. “The new normal is going to be very constrained.”
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